Approaching Wednesday Afternoon, Rupiah Exchange Rate Weakened Waiting For The Announcement Of The Fed

Illustration. (Photo: Doc. Antara)

JAKARTA - The rupiah exchange rate in Jakarta on Wednesday afternoon was corrected ahead of the announcement of the policy by the US central bank, The Fed, in the early hours of this morning.

At 11.00 a.m. local time, the rupiah had weakened 7 points or 0.05 percent to the position of IDR 14.482 per US dollar compared to the position at the previous closing trade of IDR 14.485 per US dollar.

"The US dollar seems to have strengthened at the start of the session Wednesday after the US government bond yields strengthened again this morning and the 10-year tenor moved above the 1.6 percent level", wrote the Monex Investindo Futures Research Team in a study in Jakarta, quoted from Antara, Wednesday 28 April.

However, market players are still cautious ahead of the announcement of The Fed's policy after midnight, which is expected to return to a dovish or loose tone.

The dollar index, which measures the dollar's strength against other currencies, was at 90.95, up from the previous close of 90.91.

Fed Governor Jerome Powell. (Photo: Doc. Antara)

Meanwhile, the yield on 10-year US bonds is currently at the level of 1.622 percent, the same as compared to the previous closing position.

Market participants will pay attention to comments from Fed Governor Jerome Powell, who is likely to answer concerns and questions about whether improving economic conditions justifies the withdrawal of monetary easing.

However, analysts expect Powell to stick to the Fed's ultra-accommodative stance, which will weigh on bond yields and the dollar.

On Tuesday, April 27, the rupiah closed stagnant, aka the same as the previous trade closing position of IDR 14.485 per US dollar.